Union poll says NYers want IDA reform

Photo: Sadaf Khatri, an organizer for NYIDA, the coalition advocating for IDA reform, dons a bib and passes out baby food to call for legislators to “stop babying big business”.

In the final days of the legislative session, unions and advocates are pushing hard for Industrial Development Agencies (IDA) reform.

A poll commissioned by Local 32BJ, the largest private sector union in New York State, finds that 75% of those polled say companies getting tax breaks should create good-paying jobs versus just any job.

Also, 69% are either somewhat or very convinced with a statement that says “Many states already require that companies receiving government subsidies create jobs that are full time an day at least $10.00 an hour to all employees, and New York should establish the same kind of reasonable standard.”

It isn’t surprising most people would generally support good jobs over “any jobs”, or jobs with a higher minimum wage.

Those who are against IDA reform that would include a living wage argue that it would be harder to attract companies and the wage requirements would cancel out the incentives of the IDA, particularly upstate.

The findings of the survey, conducted from May 26th to May 29th, are statistically significant within a plus or minus 4% margin of error.

Local 32BJ, the largest private sector union in New York State, is working with the New York Initiative for Development Accountability to reform the state’s IDA program to ensure that communities, as well as businesses, benefit from the tax break program.

New York —A pollof New York State residentsshows that75percent of New Yorkersbelievebusinesses benefiting from public subsidiesshould create jobs withfair wagesand not just jobs. News of the poll, commissioned by Local 32BJ, comes as the State Senate debates a reform of its115 Industrial Development Agencies,including a measure that attaches conditions to companies receiving IDA tax breaks to pay prevailing wages to its employees.

“The poll shows that New Yorkers want the State Senate to pass an IDA reform measure that addresses the need for good paying jobs,” said Kevin Doyle, Local 32BJ Executive Vice President.“The time has come forour governor and elected officials to deliver on what most New Yorkers want: a new, more equitable IDA policy that promotes good job creation.”

The State Senate is considering proposals to reform the 40-year old program which gives out $400 million a year in tax breaks to companies and other organizations. The State Assembly passed a bill in January to attach wage standardsto future IDA tax breaks.

“Big companies that fail to create good jobs should not continue getting tax breaks,” said Doyle. “Attaching wage standards to corporate subsidies would help turn back the rising tide of low paying jobs throughout New York State.”

Current IDA subsidies and tax breaks are tied to job creation targets that are rarely metand not enforced. Earlier this month, the Dutchess County IDA voted to extend IBM’s tax breaks for another five years despite failing to meet their job creation promises.

Similarly, Wal-Mart—whichreceived more than $12 million IDA tax breaks over three years — fell short of its job creation target in New York State by 351while paying cashiers just $7.92 per hour. According to the survey, 69% of New Yorkers believe full time employees should be paidat least $10 an hour.

“New Yorkers support using tax dollars to create jobsprovided theypay fair wages,” said Jonathan Trichter, the pollster commissioned by Local 32BJ.“This finding held for every geographic region and demographic.”

According to the survey, linking public subsidies to wage standards has strong support across state regions and demographics, andis particularly high among residents ofNew York City suburbs with 78 percent in favor as well as in Monroe, Erie, Onondaga and Albany counties with 84 percent of the residents ready to back regulations over the way tax dollars are spent on economic development projects. Even 61% of upstate rural residents believe job creation should be focused on quality jobs.

The findings of the survey, conducted from May 26th to May 29th, are statistically significant within a plus or minus 4% margin of error.

Local 32BJ,the largest private sector union in New York State,is working with the New York Initiative for Development Accountability to reform the state’s IDA program to ensure that communities, as well as businesses, benefit from the tax break program.